See how the State of Missouri compares to Midwestern peers in terms of key economic and talent factors and how Missouri DED compares on jobs created and investment attracted Share Colorados experience ID: 693300
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Slide1
1
Competitive DesignSlide2
What will I take away from this presentation?See how the State of Missouri compares to Midwestern peers in terms of key economic and talent factors, and how Missouri DED compares on
jobs created and investment attractedShare Colorado’s experience in creating and executing anew strategy
Understand how these findings
will
inform DED’s transformation efforts
2Slide3
PwC’s Work with Missouri DED
3Slide4
Peer state
Other leader
Who are our competitors?
Our analysis compares the State of Missouri – and Missouri DED – with thirteen Midwestern peers and four leaders from around the U.S.
* Selected data was not available for Illinois at the time of presentationSlide5
Results of Our Peer Benchmark
5Slide6
This presentation tells two stories…
6
How does the
State of Missouri
compare to peer states in terms of
key economic and talent factors
?
Story 1
State-Level Comparison
How
does
Missouri DED
compare to peer agencies in terms of
jobs created, investment attracted, and workforce outcomes
?
Story 2Agency-Level ComparisonSlide7
We begin with Story 1…
7
How does the State of Missouri compare to peer states in terms of
key economic and talent factors
?
Story 1
State-Level ComparisonSlide8
Missouri trails on GDP growth, and Michigan’s more recent GDP growth has outstripped Missouri’s considerably
GDP Growth (2007-16 CAGR) by State
Source:
U.S. Bureau of Economic Analysis (BEA)Slide9
Missouri lags peers in job growth; several peers have seen rapid job growth post-recession
Source: Economic Policy Institute (EPI) analysis of U.S. Bureau of Labor Statistics (BLS)
Local Area Unemployment Statistics dataSlide10
Missouri is among the low-to-mid range for wage growth in the last year, and its growth was only half of Tennessee’s and Arkansas’
Source: U.S. Bureau of Economic Analysis (BEA)Slide11
Missouri also struggles on key talent factors, like labor force quality and availability – showing room for improvementSources:
U.S. Census Bureau; U.S. Bureau of Labor Statistics; U.S. News & World Report; The Integrated Postsecondary Education Data System.
Note:
Talent
Factors Score is calculated by taking the sum of rankings from
multiple dimensions. All dimensions
are weighted
equally (13 points each).
What we assessed
Labor force quality and availability (2017)
Labor force productivity (2017)
Migration of college-educated young people (2009-2016)
Adults with associate degree or higher (2017)
STEM graduates living in-state (2015)Slide12
We continue with Story 2…
12
How does Missouri DED compare to peer agencies in terms of
jobs
created, investment attracted, and workforce outcomes
?
Story 2
Agency-Level ComparisonSlide13
Missouri lags behind the “leadership group” of Kansas to Wisconsin, which are more effective in creating jobs than other peers
2,721
7,863
6,511
10,668
3,591
21,861
5,278
9,411
25,678
22,848
37,356
17,373
27,171
NOTE:
These figures are influenced by macroeconomic factors – like the resurgence of the auto industry
.*Figures in columns indicate average number of jobs created per state over most recent three fiscal years (or closest data available). Figures are awaiting validation by peer state ED agencies and should not be treated as definitive.Sources: State ED Agency Annual Reports and related sources
Jobs Created (#) by ED Agencies as a Percentage of Missouri DED
(Weighted by Workforce Size)2,721
7,8636,51110,668
3,59121,861
5,0799,411
25,67822,84837,35617,37327,171Slide14
Kentucky is a clear leader in investment attraction, and Missouri trails the rest of its peers
$1.59
$1.80
$1.04
$1.03
$2.35
$1.06
$5.80
$5.42
$2.12
$4.92
$5.14
$2.29
$6.25
NOTE:
These figures are influenced by macroeconomic factors – like the resurgence of the auto industry.
*Figures in columns indicate average investment attracted per state over most recent three fiscal years (or closest data available). Figures are awaiting validation by peer state ED agencies and should not be treated as definitive.Sources: State ED Agency Annual Reports and related sources
$1.59$1.80
$1.04
$1.03$2.35$1.06$5.80
$2.12$6.33
$4.92$5.14
$2.29$6.25Slide15
Source: Upjohn Institute data, supplied by DED. Includes tradable GDP. Data not available for all peer states (AR, KS, OH excluded).
Initial research into efficiency measures – like total incentive costs by state – shows that Missouri gets a lot for what it puts in
Incentive Cost as a Percent of GDP (2015)Slide16
Missouri significantly lags its peers on key federal workforce measures of employment rates…
$1.59
$1.80
$1.04
$1.03
$2.35
$1.06
$5.80
$5.42
$2.12
$4.92
$5.14
$2.29
$6.25
Source:
Department of Labor, Employment and Training Administration
$1.59$1.80
$1.04$1.03
$2.35$1.06
$5.80$2.12$6.33
$4.92$5.14
$2.29$6.25
Entered Employment Rate (Average of PY 2014 and PY 2015, %)Slide17
…and on average six-month earnings for those entering employment
$1.59
$1.80
$1.04
$1.03
$2.35
$1.06
$5.80
$5.42
$2.12
$4.92
$5.14
$2.29
$6.25
Source:
Department of Labor, Employment and Training Administration
$1.59$1.80
$1.04$1.03
$2.35
$1.06$5.80$2.12$6.33
$4.92$5.14
$2.29$6.25
Entered Employment Earnings (Average of PY 2014 and PY 2015, $/six months)Slide18
Organizational Comparison
18Slide19
Focus is essential to increasing job growth and investment
Missouri’s Department of Economic Development is responsible for more core functions than many of its peers
Most Peers
Business Attraction
Minority Business Development
Existing Business Support
Community Assistance
Some Peers
Workforce Development
Tourism & Film
Few Peers
Energy
Other core Missouri DED functions:
Housing Development, Utility Regulations, Arts, EntrepreneurshipSlide20
Colorado’s Story & Habits of Leaders
20Slide21
Colorado’s six pillars guide its economic development strategy and execution
Build a Business-Friendly Environment
Retain, Grow & Recruit Companies
Increase Access to Capital
Create & Market a Stronger Colorado Brand
Educate & Train
the Workforce of
the Future
Cultivate Innovation & TechnologySlide22
What’s Next?
22Slide23
Our upcoming assessment will examine several key research themes
Agency Functions and Structures
Staffing and Specialization
Revenues, Budgets and Expenditures
Strategy and Tie-Ins
to Workforce Development
Internal Processes and Performance Management
Relationships with
Other StakeholdersSlide24
Questions?
24